USA Statutes : arizona
Title : Amusements and Sports
Chapter : TOURISM AND SPORTS AUTHORITY
5-801 Definitions
In this chapter, unless the context otherwise requires:
1. "Authority" means the tourism and sports authority.
2. "Board" means the board of directors of the authority.
3. "Indian tribe" means any organized Indian nation, tribe, band or community that
is recognized as an Indian tribe by the United States department of the interior.
4. "Multipurpose facility" means any facility that is suitable to be used to
accommodate professional football franchises, major college football bowl sponsors, other
sporting events and entertainment, cultural, civic, meeting, trade show or convention
events or activities and may include a stadium, on-site infrastructure, parking garages
and lots and related commercial uses within the facility.
5. "Site host" means any of the following entities that owns all or part of the
multipurpose facility site at the time the site is provided to the authority pursuant to
section 5-807:
(a) This state or any agency of this state.
(b) The county in which the authority is located.
(c) Any city or town located in the county in which the authority is located.
(d) Any Indian tribe if all or part of the tribe's reservation is located in that
county. 5-802 Formation of authority
A. The tourism and sports authority is established. The boundaries of the authority
are the boundaries of any county that has a population of more than two million persons.
B. The authority is a corporate and political body and, except as otherwise
limited, modified or provided by this chapter, has all of the rights, powers and
immunities of municipal corporations, including the power of eminent domain.
C. The board of directors and the authority do not have the power to levy or
otherwise impose any tax or assessment, other than charges for the use of facilities
owned by the authority. The qualified electors residing in the authority may levy a tax
or surcharge for the fiscal needs of the authority as provided by this chapter, but the
board of directors has no independent authority to impose or collect a tax or assessment.
Subject to that limitation, the authority is considered to be a tax levying public
improvement district for the purposes of article XIII, section 7, Constitution of
ARIZONA.
D. The authority is regarded as performing a governmental function in carrying out
the purposes of this chapter. The property acquired or constructed by the authority, the
activities of the authority in maintaining and caring for the property and the monies
derived by the authority from operating the property are exempt from state and local
income and property taxation. 5-803 Board of directors
A. The authority is governed by a board of directors consisting of the following
members who must reside in the county in which the authority is established:
1. Five members appointed by the governor pursuant to section 38-211. No more than
three of these members may be from the same political party. Of these members, the
governor shall appoint:
(a) One member from the tourism industry in the authority.
(b) One member from the hotel and motel industry located in the authority.
(c) One member representing a youth sports organization in the authority.
(d) One member representing a major league baseball spring training organization in
the authority.
2. Two members who are appointed by the president of the senate and who are not of
the same political party.
3. Two members who are appointed by the speaker of the house of representatives and
who are not of the same political party.
B. No member of the board may simultaneously hold any state or local elective
public office. The governor, president of the senate and speaker of the house of
representatives shall make appointments to produce a general geographically diverse
representation of areas in the authority. Members of the board shall be appointed for
terms of five years. A member may be reappointed for one full subsequent term.
C. Members of the board are eligible for compensation as provided by section
38-611.
5-804 Administrative powers and duties
A. The board of directors, on behalf of the authority, may:
1. Adopt and use a corporate seal.
2. Sue and be sued.
3. Enter into contracts, including intergovernmental agreements under title 11,
chapter 7, article 3, as necessary to carry out the purposes and requirements of this
chapter.
4. Enter into an intergovernmental agreement under title 11, chapter 7, article 3
with the ARIZONA exposition and state fair board for the joint use of properties and
facilities, sharing administration, personnel and resources and other matters that are
beneficial to the purposes of the multipurpose facility and the state fair.
5. Adopt administrative rules as necessary to administer and operate the authority
and any property under its jurisdiction.
6. Acquire by any lawful means and operate, maintain, encumber and dispose of real
and personal property and interests in property.
7. Retain legal counsel and other consultants as necessary to carry out the
purposes of the authority.
8. Enter into contracts with a professional football league for its championship
game or with a nonprofit community based organization that operates or administers an
intercollegiate national championship game that provide for the payment to the league or
organization of transaction privilege tax revenues derived pursuant to section 42-5073,
subsection G, paragraph 1 from sales of admissions to these championship games if the
authority has fully paid the current year's required principal and interest payments on
any outstanding authority bonds for which these revenues were pledged pursuant to article
3 of this chapter.
9. Enter into contracts with a nonprofit community based organization that sponsors
an intercollegiate national championship game that provides for the payment to the
organization of a ticket surcharge or facility user fee associated with parking if the
authority has fully paid the current year's required principal and interest payments on
any outstanding authority bonds for which these revenues were pledged pursuant to article
3 of this chapter.
B. The board of directors shall:
1. Appoint from among its members a chairman, a secretary and such other officers
as may be necessary to conduct its business.
2. Employ an executive director and prescribe the terms and conditions of
employment.
3. Keep and maintain a complete and accurate record of all of its proceedings. The
board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39,
chapter 1.
4. Provide for the use, maintenance and operation of the properties and interests
owned or controlled by the authority.
5. On or before September 12, 2002, approve a site for the construction of the
multipurpose facility proposed at any time before that date by site hosts. 5-805 Executive director; duties A. The executive director is responsible for managing, administering and supervising the activities of the authority. B. The executive director shall negotiate, make, execute, acknowledge and perform contracts and other agreements in the interest of the authority or to carry out or accomplish the purposes of this chapter, including construction contracts and agreements with users of the multipurpose facility, all of which are subject to approval by the board. C. The executive director shall: 1. Employ a treasurer to serve as fiscal agent to deposit, hold, invest and disburse the authority's monies. 2. Employ administrative and clerical employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. Employees of the authority are considered to be public employees for purposes of title 38. 3. Recommend the employment of consultants by the board, including outside counsel and a professional facility management company. 4. Direct the activities of outside consultants. 5-806 Gift ban; principals and lobbyists;exemptions
A. A principal or lobbyist or any other person acting on behalf of a principal or
lobbyist shall not give a gift to any board member or employee of the board and a board
member or employee of the board shall not accept a gift from a principal or lobbyist.
B. For the purpose of this section, a gift does not include any of the following:
1. Salary, compensation or employer reimbursed expenses lawfully paid to a board
member or employee.
2. A family gift.
3. An award or prize that is given to competitors in a contest or event that is
open to the public including a random drawing.
4. Any discount or other benefit that is offered to a board member or employee on
the same conditions as to the public, to a class consisting of all board members and
employees or to a group or class in which membership is unrelated to being a board member
or employee.
5. An educational event or speaking engagement.
6. Expenses relating to a special event or function to which all members of the
board are invited and that are properly reported.
7. Flowers.
8. Food and beverage.
9. Informational material, including a book, calendar, pamphlet, periodical, report
or video.
10. An item that is not used and that is returned within fifteen days of receipt to
the donor or that is delivered within fifteen days of receipt to a charitable
organization and that is not claimed as a charitable contribution for state or federal
income tax purposes.
11. An item that is given to a board member or employee if the board member or
employee gives an item of approximately the same value to the giver of the item at the
same time that the item is given or on a similar occasion as the one that prompted the
original item to be given.
12. An item of a personal nature that was customarily received by an individual from
the donor before the individual became a board member or employee.
13. An item that is given to the general public at an event.
14. An item of nominal value such as a greeting card, baseball cap, t-shirt, mug or
pen.
15. Nonrecreational travel or lodging, or both.
16. Personal hospitality.
17. A plaque or other form of recognition similar to a plaque to a board member or
employee to signify the honorary recognition of a service or other notable
accomplishment.
18. Professional or consulting services rendered on matters directly related to
holding a position on the board or employee of the board and that are not rendered to
obtain a benefit for any registered principal, public body, lobbyist, designated public
lobbyist or authorized public lobbyist or the clients of a principal or lobbyist.

5-807 Constructing and operating multipurpose facility
A. The authority shall construct, finance, furnish, maintain, improve, operate,
market and promote the use of a multipurpose facility and do all things necessary or
convenient to accomplish those purposes. One or more site hosts shall provide the land,
infrastructure and parking facilities associated with the multipurpose facility. The
authority shall own the multipurpose facility, subject only to liens and other security
interests of record. The authority may own or lease the land on which the multipurpose
facility is located.
B. The executive director shall:
1. Recommend to the board for its approval a contractor and architect, unless the
architect will be employed directly by the contractor.
2. Work with the users, contractor and architect to prepare a design for the
multipurpose facility and submit the design to the board for its approval.
3. Prepare the construction budget and schedule for the multipurpose facility and
submit them to the board for its approval.
4. Prepare the annual operating budget for the multipurpose facility and submit it
to the board for its approval.
5. Negotiate use agreements with parties that will use the multipurpose facility on
a regular basis, including parties that will make a contribution toward the construction
of the facility, and submit the agreements to the board for its final action. Any such
agreement that grants naming or other advertising rights must include a provision
requiring the multipurpose facility name and other advertising to comply with community
decency standards.
6. Negotiate agreements with the contractor and architect, unless the architect
will be employed directly by the contractor, and submit the agreements to the board for
its final action.
7. Review construction change order requests and submit them to the board with
recommendations for final action.
8. Arrange for capital and operating financing, as needed, and submit the
transactions to the board for its final action.
9. Analyze and recommend to the board potential sites for the multipurpose facility
proposed at any time before September 13, 2002 by a site host.
10. Negotiate agreements with site hosts, including intergovernmental agreements
pursuant to title 11, chapter 7, article 3 if a site host is a public agency, as defined
in section 11-951, concerning the land, infrastructure and parking to be provided by the
site host and submit the agreements to the board for its final action. All agreements
must:
(a) Provide that the site host shall indemnify and hold harmless the authority and
this state from any liability to the extent resulting from the negligent or intentional
acts or omissions of the site host, its representatives and agents or employees resulting
from any access ways provided by the site host and reasonably used by the public for
ingress and egress to the land, infrastructure and parking facilities provided by the
site host for use in connection with the multipurpose facility.
(b) Require any site host to maintain insurance or an adequate self-insurance plan
for any liability of the site host, with a waiver of sovereign immunity if necessary.
11. In consultation with the users of the multipurpose facility, negotiate a
contract with a management firm to operate, promote and market the multipurpose facility
and submit the contract to the board for its final action.
12. In consultation with the users of the multipurpose facility, negotiate contracts
with concessionaires and other providers for food, beverage and other services at the
multipurpose facility and submit the contracts to the board for its final action.
13. Take other actions that are necessary to ensure that the multipurpose facility
is constructed according to the schedule and budget approved by the board.
C. Title 34 applies to the authority, except that regardless of the funding source
for design and construction of facilities and structures and notwithstanding title 41,
chapter 23, the authority may establish alternative systems and procedures, including the
use of the design-build method of construction and the use of qualifications-based
selection of contractors with experience in stadium design or construction, by either
direct selection or by public competition, to expedite the design and construction of any
of its facilities or structures or any facilities or structures leased to it or used by
it pursuant to an intergovernmental agreement. For purposes of this subsection:
1. "Design-build" means a process of entering into and managing a contract between
the authority and another party in which the other party agrees to both design and build
any structure, facility or other items specified in the contract.
2. "Qualifications-based selection" means a process of entering into and managing a
contract between the authority and another party in which the other party is selected by
the authority on the basis of the party's qualifications and experience in designing or
constructing facilities, structures or other items similar to those the authority is
authorized to construct or lease.
D. The plans and specifications for the multipurpose facility are subject to review
and approval by the board. The board shall inspect and approve construction of the
facility, if it conforms to the plans and specifications and applicable engineering
standards. Throughout the life of the multipurpose facility, the board is responsible and
shall monitor and take action as necessary to ensure the appropriate maintenance and
operation of the facility.
E. To assure that a site host has the financial capability to perform its
obligations under any agreements with the authority, before entering into an agreement
with any site host, the authority shall either:
1. Cause a review of the financial books and records of the site host by an
independent certified public accountant selected by the authority who shall prepare for
the authority, and attest to, a report setting forth the results of that review.
2. Provide in the agreement with the site host another method for assuring the
payment of the obligations of the site host. The alternative methods for assuring payment
may include:
(a) Deposits in a construction trust account in an amount equal to the site host's
estimated obligations to the authority.
(b) Posting a bond in an amount equal to the site host's estimated obligations to
the authority.
(c) Providing the authority with a letter of credit in an amount equal to the site
host's estimated obligations to the authority.
(d) Other similar financial assurance.
F. The authority shall provide in any agreements between the authority and a site
host that is an Indian tribe:
1. A waiver of sovereign immunity to allow the enforcement by the authority of the
agreements entered into between the authority and the Indian tribe.
2. A consent to the jurisdiction of state and federal courts by the Indian tribe.
3. A waiver of the right to require the authority to exhaust tribal remedies before
bringing an action in state or federal courts.
4. That state and federal law will govern the interpretation of any agreements
entered into between the authority and the Indian tribe.
5. An agreement that the Indian tribe will levy, collect and pay to the authority a
charge or other imposition equivalent to the taxes provided in section 5-840 for any
hotel located within a development area to be defined by agreement between the authority
and the Indian tribe around the multipurpose facility.
6. An agreement that the Indian tribe will provide for an annual disclosure of gross
proceeds of sales or gross income as determined for purposes of a tax base under the
transient lodging transaction privilege tax classification under section 42-5070 and
contributions made to the authority equal to the taxes as provided by section 5-840.

5-808 Major league baseball spring trainingfacilities; local financial participation
A. From monies in the cactus league promotion account established by section 5-837,
the authority may:
1. Acquire land or construct, finance, furnish, improve, market or promote the use
of existing or proposed major league baseball spring training facilities that are located
in the authority and other structures, utilities, roads, parking areas or buildings
necessary for full use of the training facilities for sports and other purposes.
2. Do all things necessary or convenient to accomplish those purposes.
B. Monies in the cactus league promotion account:
1. May be used for the purposes of:
(a) Attracting major league baseball spring training operations to locations in the
authority.
(b) Retaining major league baseball spring training operations in their current
locations in the authority.
2. Shall not be used to facilitate the relocation of a major league baseball spring
training operation from one location in this state to another location in this state
unless either:
(a) Another major league baseball team has made contractual commitments to assure
the relocation of its spring training operations from a location outside this state to
the vacated facility.
(b) The relocation is to a facility located in the authority from another facility
in this state that was shared with another major league baseball team.
C. The board shall require that any project undertaken pursuant to this section
include financial participation from the county or municipality in which the project is
located, from a private party or from any combination of these entities that equals or
exceeds one-half of the amount to be spent or distributed by the authority. Capital
improvement monies spent by a county, municipality or private party for a purpose
authorized by this section may be considered to be financial participation with respect
to any project the authority may undertake.
D. For purposes of financing, designing or constructing facilities or structures,
the authority is not the agent of any other party participating in the funding of the
facility or structure.
E. Before undertaking the planning or construction of the first new facility under
this section, the board may consider the costs of anticipated required renovations of
existing facilities and shall consider such costs for subsequent new facilities.

5-809 Community youth and amateur sports andrecreational facilities; local financial participation
A. From monies in the youth and amateur sports facilities account established by
section 5-838, the authority may:
1. Acquire land or construct, finance, furnish, maintain, improve, operate, market
or promote the use of community youth and amateur sports facilities, recreational
facilities and other community facilities or programs that are located in the authority.
2. Do all things necessary or convenient to accomplish those purposes.
B. The board shall require that any project undertaken pursuant to this section
include financial participation from the county, municipality or school district in which
the project is located, from any other party or from any combination of these entities
that equals or exceeds one-half of the amount to be spent or distributed by the
authority. Capital improvement monies spent by a county, municipality, school district or
other party for a purpose authorized by this section may be considered to be financial
participation with respect to any project the authority may undertake.
C. For purposes of financing, designing, constructing or operating facilities or
structures, the authority is not the agent of any other party participating in the
funding of the facility or structure.
D. In evaluating projects under this section, the board shall give priority to
youth recreational facilities that are adjacent, in proximity or of benefit to public
schools.

5-810 Regulating sale, use and consumption ofalcoholic beverages
Subject to the requirements of title 4, the board may permit and regulate the sale,
use and consumption of alcoholic beverages at events held on property acquired, leased or
subleased under this chapter.

5-811 Conflicts of interest; violation;classification
A. The directors, officers and employees of the authority are subject to title 38,
chapter 3, article 8 relating to conflicts of interest.
B. A director, officer or employee of the authority shall not have any direct or
indirect financial interest in any property owned, purchased or constructed by the
authority.
C. A person who violates this section is guilty of a class 1 misdemeanor.

5-812 Performance audit
A. Beginning not later than 2004 and at least every fifth year thereafter, the
auditor general shall conduct a performance audit, as defined in section 41-1278, of the
authority.
B. On or before November 30 of the respective year the auditor general shall issue
a public report of the performance audit including findings and specific recommendations
for statutory and administrative changes to improve the operation of the authority. The
auditor general shall submit copies of the report to the governor, president of the
senate, speaker of the house of representatives, secretary of state and the director of
the ARIZONA state library, archives and public records.
5-813 Disadvantaged business enterpriseparticipation goals; contractor employment requirements
A. Notwithstanding any other law, the authority shall:
1. Establish disadvantaged business enterprise participation goals for the design,
engineering and construction of the multipurpose facility under section 5-807 based on
the availability of ready, willing and able disadvantaged business enterprises compared
to the general population of consultants, prime contractors and subcontractors, suppliers
and service providers.
2. Establish procedures for meeting these goals, including compiling a registry of
disadvantaged business enterprises that are certified by a local, county or state agency.
3. Require monthly reports by the project coordinator regarding compliance with the
goals.
4. Monitor compliance with this section through intergovernmental agreements with a
state or county disadvantaged business enterprise program monitor or a contract with an
independent organization that is experienced in monitoring disadvantaged business
enterprise programs.
5. Impose sanctions if, based on recommendations of the monitoring organization,
the authority determines that a good faith effort was not made to comply with the
established procedures.
B. The authority shall provide that any contract with respect to the design,
engineering and construction of the multipurpose facility under section 5-807 shall
require each prime contractor and major subcontractors to provide health insurance to the
contractor's employees and dependents of the contractor's employees, except for those
employees who work less than one hundred twenty days in a calendar year.
C. The executive director, the project coordinator and all persons who enter into
contracts, agreements or understandings related to the construction and operation of the
multipurpose facility shall comply with the procedures established pursuant to this
section.
5-814 Monthly report; appearance before jointlegislative budget committee
A. Within three weeks after the end of each calendar month the authority shall
prepare a report signed by the executive director of the authority and transmit the
report to the governor, the legislature, as provided by section 41-1178, and the joint
legislative budget committee. The report shall include a progress report of the
activities of the authority during the previous month.
B. At the request of the chairman of the joint legislative budget committee, the
executive director shall appear before the joint legislative budget committee annually to
report on the activities and financial performance of the authority during the previous
year.

5-815 Intercollegiate football nationalchampionship and playoff games
A. The authority shall enter into a special use agreement for the sole purpose of
hosting at the multipurpose facility an intercollegiate football national championship
game or playoff games. The authority may only contract for this purpose with a nonprofit
community based organization that has extensive experience in operating or managing
intercollegiate football bowl games in this state.
B. A national championship game or playoff game, hosted pursuant to subsection A,
shall not be considered an event conducted by the authority and shall be in addition to
any other annual intercollegiate football game hosted at the multipurpose facility. Any
special use agreement shall provide that:
1. The manager and operator of an intercollegiate football national championship
game or playoff game:
(a) Is not required to pay to the authority:
(i) Any facility user fees, including any fees on ticket sales, discount sales or
complimentary tickets related to the event.
(ii) game day expenses for the 2007 national championship game in excess of two
hundred seventy-five thousand dollars, including any expenses associated with providing
at least seventy-three thousand seats in the multipurpose facility.
(b) Has the exclusive rights to the marketing and pricing of all seats, club seats
and suites at the event, broadcasting the event and the revenues for concession sales and
temporary advertising related to the event.
(c) Has the right to use all communication systems and all other services and
amenities located in the facility under the authority's control without the assessment of
a fee, a charge, rent or a share of the revenue.
2. The scheduling of an intercollegiate football national championship game and its
related activities and preparations for up to seventy-two hours before kickoff of the
game has exclusive priority and use over any other event hosted by the authority at the
facility except for a home playoff or wild card playoff game of a local professional
football franchise. If a home playoff or wild card playoff game of a local professional
football franchise is scheduled at the facility at the same time as the intercollegiate
football national championship game or playoff game, the parties shall agree to make
appropriate adjustments for the timing necessary to host both events at the facility. 5-831 Annual budget
A. Beginning in 2001, on or before June 30 of each year the board shall hold a
public hearing to adopt a budget for the following fiscal year that includes:
1. Receipts during the past fiscal year.
2. Expenditures during the past fiscal year.
3. Estimates of amounts necessary for expenses during the following fiscal year
including amounts proposed for:
(a) Costs of planning, constructing, financing, maintaining, operating and managing
a multipurpose facility.
(b) Promotional and marketing expenses of the authority.
(c) Administrative costs of the authority.
4. Anticipated revenue to the authority from each source in the following fiscal
year.
5. A complete asset and liability statement.
6. A statement of profit or loss from operations.
7. Cash on hand as of the date the budget is adopted and the anticipated balance at
the end of the current fiscal year.
8. An itemized statement of commitments, reserves and anticipated obligations for
the following fiscal year.
B. The board may amend the budget on a finding of good cause.

5-832 General fund; investments
A. The authority shall maintain a general fund, divided into a construction
account, a facility revenue clearing account and a tourism revenue clearing account. The
authority may establish additional accounts and subaccounts as necessary and convenient.
All revenues and monies received by the authority shall initially be deposited in
accounts and subaccounts in the general fund as provided by law.
B. The authority may invest any unexpended monies in the fund as provided in title
35, chapter 2. Interest and other income from investments of monies in any account shall
be credited to that account except as otherwise provided by law.
C. The authority's investments must mature when the fund assets will be required
for the purposes of this chapter. If the liquid assets in the fund become insufficient to
meet the authority's obligations, the board shall direct the treasurer to liquidate
sufficient securities to meet all of the current obligations and immediately notify the
auditor general of the insufficiency. The auditor general shall investigate and audit the
circumstances surrounding the depletion of the fund and report the findings to the board.


5-833 Construction account
A. The authority shall maintain a construction account in the general fund
consisting of:
1. Monies received by the authority from any source for the purpose of acquiring
land for and funding the cost of constructing a multipurpose facility, including
financial participation for capital costs of the facility from any private or public
source.
2. Proceeds of bonds issued by the authority pursuant to section 5-863, which shall
be held in a segregated bond proceeds subaccount in the construction account.
B. The authority may spend monies in the construction account for costs of any
multipurpose facility purpose, as defined in section 5-861.

5-834 Facility revenue clearing account
A. The authority shall maintain a facility revenue clearing account in the general
fund consisting of:
1. Revenues received from dedicated public funding sources as provided by law.
2. Payments received from leasing, subleasing or renting property owned, leased or
controlled by the authority.
3. Revenues received by the authority from admissions, concessions and other
proceeds from events held at a multipurpose facility owned or leased by the authority.
4. Gifts, grants and donations received for operating purposes from any public or
private source.
5. Proceeds from the sale of any of the authority's property.
6. Financial participation for operating costs received from the county or
municipality in which a multipurpose facility owned or leased by the authority is
located.
B. On the second Tuesday of each month, the treasurer of the authority shall
distribute all monies in the account in the following order of priority:
1. To the debt service account established by section 5-865, an amount equal to
one-twelfth of the annual debt service on bonds and other debt obligations of the
authority that are secured in whole or in part by and payable from revenues or monies
deposited to the facility revenue clearing account, net of deposits to the debt service
account pursuant to section 5-835, subsection B, paragraph 1.
2. To the operating account of the authority established by section 5-836, all
remaining monies in the facility revenue clearing account.

5-835 Tourism revenue clearing account
A. The authority shall maintain a tourism revenue clearing account within the
general fund consisting of monies transmitted to the authority by the state treasurer
pursuant to sections 5-839 and 5-840. On the second Tuesday of each month, the treasurer
of the authority shall distribute all monies in the account as provided by this section.
B. For as long as the authority owes debt service on bonds or other debt
obligations payable from revenues or monies deposited in the tourism revenue clearing
account, the treasurer shall distribute all monies in the account in the following order
of priority:
1. To the debt service account established by section 5-865, an amount equal to
one-twelfth of the annual debt service on bonds and other debt obligations issued by the
authority for not more than one-half of three hundred thirty-one million dollars of the
capital costs associated with constructing the multipurpose facility, plus interest
earned on any monies escrowed before payment to the debt service account, amortized over
a thirty year repayment term and that are secured in whole or in part by and payable from
revenues or monies deposited in the tourism revenue clearing account, or a lesser amount
as determined by the authority.
2. To the tourism fund established by section 41-2306, an amount equal to
one-twelfth of four million dollars over the first twelve months of distribution,
increased in each subsequent twelve month period by an additional five per cent over the
preceding twelve months' distribution.
3. To the cactus league promotion account established by section 5-837, an amount
equal to:

      During the first eighty-four months       $250,000 per month
 

During the eighty-fifth through one

        hundred twentieth months                $333,333 per month
 

During the one hundred twenty-first through

        one hundred forty-fourth months         $500,000 per month
 

During the one hundred forty-fifth through

        one hundred ninety-second months        $583,333 per month
 

During the one hundred ninety-third through

        two hundred fortieth months             $666,667 per month
 

During the two hundred forty-first through

        two hundred eighty-eighth months        $750,000 per month
 

During the two hundred eighty-ninth through

        three hundred twelfth months      $833,333 per month
 

During the three hundred thirteenth through

        three hundred sixtieth months     $916,667 per month
 

4. To the youth and amateur sports facilities account established by section 5-838,
an amount equal to one-twelfth of one million dollars over the first twelve months of
distribution, increased in each subsequent twelve month period by an additional one
hundred thousand dollars over the prior twelve months' distribution.
5. To the operating account established by section 5-836, an amount equal to
one-twelfth of the authority's adopted budget for the period for the purposes set forth
in section 5-836, subsection B, paragraphs 1 and 2.
6. To the youth and amateur sports facilities reserve established by section 5-838,
subsection B, an amount required to be distributed pursuant to paragraph 4 during the
preceding fiscal year to the youth and amateur sports facilities account established by
section 5-838, subsection A, less any amount on deposit in the youth and amateur sports
facilities reserve.
7. To the operating account established by section 5-836, any monies remaining
unallocated each month.
C. After all bonds and other debt obligations of the authority that are secured in
whole or in part by and payable from revenues or monies deposited in the tourism revenue
clearing account are redeemed or fully provided for, the treasurer of the authority shall
distribute all monies remaining in the account after the distributions provided for by
subsection B, paragraphs 2, 3 and 4 of this section, and after the authority's repair and
replacement requirements are funded pursuant to section 5-836, subsection C, paragraph 2,
as follows:
1. Seventy per cent to the tourism fund established by section 41-2306.
2. Thirty per cent to the cactus league promotion account established by section
5-837. 5-836 Operating account
A. The authority shall maintain an operating account consisting of monies
transmitted to the account pursuant to sections 5-834 and 5-835.
B. The authority may spend monies in the operating account for costs incurred for
any of the following purposes:
1. Operating, marketing, promoting, furnishing and equipping a multipurpose
facility.
2. Paying all costs associated with the authority's administrative duties as
provided in sections 5-804 and 5-805.
3. Payment to the debt service account established by section 5-865 to be used for
payment or early redemption of bonded indebtedness.
C. The authority shall establish in the operating account:
1. A reserve to meet future operating costs of the authority, including amounts
that are sufficient to pay all costs associated with events held at the multipurpose
facility.
2. A reserve for repair, replacement and removal costs associated with the
multipurpose facility in an amount at least equal to twenty-five million dollars,
adjusted for inflation each year after 2001.
D. This state is not liable or responsible for the operating costs of the
authority, including the operating, marketing, promotion, furnishing, equipping, repair
or replacement costs of any facility or project funded by the authority.

5-837 Cactus league promotion account
A. The authority shall maintain a cactus league promotion account consisting of
monies transmitted to the account pursuant to section 5-835.
B. The authority shall use monies in the account for purposes of section 5-808.
C. The authority may pledge all or part of the revenues and other monies received
by the authority to secure bonds or other debt obligations issued by the authority for
the purposes of providing monies for expenditure under this section. As nearly as
practicable, the bonds issued pursuant to this subsection shall be authorized and issued
in a manner consistent with article 3 of this chapter, except that the proceeds of the
bonds shall be spent pursuant to this section. The pledge securing bonds issued pursuant
to this section is subordinate to the pledge securing bonds or other debt obligations
issued pursuant to article 3 of this chapter and, except for monies already in the cactus
league promotion account, to the distribution of monies pursuant to section 5-835,
subsection B, paragraph 2.

5-838 Youth and amateur sports facilities account; reserve
A. The authority shall maintain a youth and amateur sports facilities account
consisting of monies transmitted to the account pursuant to section 5-835.
B. The authority shall establish a youth and amateur sports facilities reserve
within the account consisting of monies transmitted to the reserve pursuant to section
5-835, subsection B, paragraph 6. The authority shall transfer from the reserve to the
account an amount equal to any deficiency in the monthly amount distributed to the
account pursuant to section 5-835, subsection B, paragraph 3.
C. The authority shall use monies in the account for purposes of section 5-809.

5-839 Car rental surcharge
A. The qualified electors residing in the authority, by majority vote at an
election held in the authority, may levy and, if levied, the department of revenue shall
collect a car rental surcharge beginning on the first day of the first month beginning
ninety days after the election to levy the surcharge. The surcharge shall be in effect
for three hundred sixty months.
B. The rate of the surcharge is:
1. Three and one-fourth per cent of the gross proceeds or gross income from the
business or two dollars fifty cents on each lease or rental, whichever is more.
2. In the case of a person who leases or rents the motor vehicle as a temporary
replacement motor vehicle, two dollars fifty cents on each lease or rental. For purposes
of this paragraph, "temporary replacement motor vehicle" means a vehicle loaned by a
motor vehicle repair facility or dealer or rented by a person temporarily to use while
the vehicle that it is replacing is not in use because of breakdown, repair, service,
damage or loss.
C. The surcharge applies to the business of leasing or renting for less than one
year motor vehicles for hire without a driver, that are designed to operate on the
streets and highways of this state and that are primarily intended to carry not more than
fourteen passengers, regardless of whether the vehicle is registered or licensed in this
state.
D. The surcharge does not apply to the lease or rental of a motor vehicle to an
automobile dealership, a repair facility, an insurance company or any other person that
provides that vehicle at no charge to a person whose own motor vehicle is being repaired,
adjusted or serviced.
E. The surcharge is not taxable under section 42-5071.
F. Unless the context otherwise requires, section 42-6102 governs the
administration of a surcharge imposed under this section, which shall be reported on a
form prescribed by the department of revenue. The department of revenue shall require a
report of the number of lease or rental transactions and shall transmit that number to
the state treasurer.
G. Each month the state treasurer shall distribute revenues collected pursuant to
this section as follows:
1. Transmit an amount equal to two dollars fifty cents on each lease or rental
transaction to the county stadium district established in the county in which the
authority is located pursuant to title 48, chapter 26 for deposit in the county stadium
district fund. The board of directors of the county stadium district may pledge all or
part of these monies to secure district bonds or financial obligations under title 48,
chapter 26.
2. Pay the remainder of the monies collected during the month to the authority for
deposit in the tourism revenue clearing account established by section 5-835.
5-840 Tax on hotels
A. The qualified electors residing in the authority, by majority vote at an
election held in the authority, may levy and, if levied, the department of revenue shall
collect a tax on the gross proceeds of sales or gross income from the business of every
person engaging or continuing in a business taxed under title 42, chapter 5 and
classified under section 42-5070 within the authority. A tax under this section is in
addition to the tax imposed by title 42, chapter 5 and any tax imposed by a city or town
in the authority.
B. If levied, the tax shall be levied under this section beginning on the first day
of the first month beginning ninety days after the election to levy the tax. The tax
shall be in effect for three hundred sixty months.
C. The rate of the tax is one per cent of the tax base prescribed by section
42-5070.
D. Unless the context otherwise requires, section 42-6102 governs the
administration of the tax imposed under this section.
E. Each month the state treasurer shall transmit the net revenues collected
pursuant to this section to the authority for deposit in the tourism revenue clearing
account established by section 5-835.
5-841 Audit
A. The board of directors shall cause an annual audit to be conducted of each of
the authority's funds, accounts and subaccounts by an independent certified public
accountant within one hundred twenty days after the end of the fiscal year.
B. The board shall immediately file a certified copy of the audit with the auditor
general. The auditor general may make such further audits and examinations as necessary
and may take appropriate action relating to the audit or examination pursuant to title
41, chapter 7, article 10.1. If the auditor general takes no further action within thirty
days after the audit is filed, the audit is considered to be sufficient.
C. The board shall pay negotiated and approved fees and costs of the certified
public accountant and auditor general under this section from the operating account of
the authority.

5-861 Definitions
In this article, unless the context otherwise requires:
1. "Bond related expenses" means any expenses incurred by the authority to issue
and administer its bonds including underwriting fees and costs, trustee fees, financial
consultant fees, printing and advertising costs, paying agent fees, transfer agent fees,
legal, accounting, feasibility consultant and other professional fees and expenses,
credit enhancement fees, attorney and accounting fees and expenses related to credit
enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency
fees and costs, travel and telephone expenses and all other fees considered necessary by
the authority in order to market and administer the bonds.
2. "Bonds" means the bonds of the authority issued pursuant to this article.
3. "Multipurpose facility purpose" includes the following purposes:
(a) Acquiring, designing, developing, constructing, reconstructing, equipping,
repairing, maintaining, operating and improving a multipurpose facility and improvements.
(b) The payment of bond obligations.
(c) Bond related expenses.


5-862 Authorization of bonds
A. The authority may issue negotiable bonds pursuant to this article in such
principal amount as, in the opinion of the board, is necessary to:
1. Provide sufficient monies for any multipurpose facility purpose.
2. Pay necessary bond related expenses.
3. Establish and fully or partially fund any reserves or sinking accounts
established by the bond resolution.
4. Issue refunding bonds if the board considers refunding to be expedient. The
board may provide for investing and holding the proceeds of the refunding bonds in trust
for the benefit of the holders of the bonds being refunded.
5. Refund any bonds issued by the authority if the bonds are secured from the same
source of revenues as the bonds authorized in this article by issuing new bonds, whether
the bonds to be refunded have or have not matured.
6. Issue bonds partly to refund outstanding bonds and partly for any multipurpose
facility purpose consistent with this article.
B. The board shall authorize the bonds by resolution. The resolution shall
prescribe:
1. The authority's revenue sources that are pledged and dedicated to secure the
bonds.
2. The rate or rates of interest, which may be fixed or variable, the date or dates
on which interest is payable and the denominations of the bonds.
3. The date or dates of the bonds and maturity.
4. The manner of executing the bonds.
5. The medium and place of payment.
6. The terms of redemption, which may provide for a premium for early redemption.

5-863 Issuance and sale of bonds;notice
A. The board shall issue the bonds in the number and amount provided in the
resolution.
B. The bonds may be sold by competitive bid or negotiated sale for public or
private offering at the price and on the terms prescribed in the resolution.
C. The proceeds from the sale of the bonds shall be deposited in the bond proceeds
subaccount established by section 5-864.
D. Title 35, chapter 3, article 7 applies to the board and to bonds issued under
this article.

5-864 Bond proceeds subaccount
A. If the authority issues bonds under this article, the board shall establish a
bond proceeds subaccount within the construction account established by section 5-833
consisting of monies received from the sale of the bonds.
B. The authority may use monies in the bond proceeds subaccount only for
multipurpose facility purposes in the manner prescribed by this chapter.
C. The treasurer or fiscal agent of the authority shall administer and account for
the bond proceeds subaccount.

5-865 Debt service account
A. If the authority issues bonds under this article the board shall establish a
debt service account consisting of monies designated and dedicated by the board for
repayment of the bonds and payment of costs and related expenses associated with
redeeming the bonds.
B. Monies in the debt service account may be used only for the purposes authorized
by this article.
C. The treasurer or fiscal agent of the authority shall administer and account for
the debt service account.

5-866 Securing principal and interest
In connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the board by resolution may:
1. Pledge for the payment of principal and interest on the bonds all or part of the
revenues and other monies received by the authority and deposited in the general fund or
any account or subaccount of the authority.
2. Pledge and assign to or in trust for the benefit of the holder or holders of the
bonds all or part of the monies in the debt service account or any other account or
subaccount as necessary to secure and pay the principal, the interest and any premium on
the bonds as they come due.
3. Segregate the debt service account into one or more subaccounts and provide that
bonds issued under this article may be secured by a lien on all or part of the monies
paid into the debt service account or into any subaccount in the debt service account.
4. Establish priorities among bondholders based on criteria adopted by the board.
5. Set aside, regulate and dispose of reserves and sinking accounts.
6. Prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of which must
consent to and the manner in which the consent may be given.
7. Provide for payment of bond related expenses from the proceeds of the sale of
the bonds or other revenues available to the board.
8. Provide for the services of trustees, co-trustees, agents, consultants and other
specialized services with respect to the bonds.
9. Contract with a financial institution, insurance company or indemnity company to
provide additional security for the bonds in the form of a line of credit, letter of
credit, insurance policy or other security and pay the costs of this additional security
from amounts provided in the bond issue or from other available sources.
10. Take any other action that in any way may affect the security and protection of
the bonds or interest on the bonds.


5-867 Lien of pledge
A. Any pledge made under this article is valid and binding from the time when the
pledge is made.
B. The monies pledged to the holders of the bonds and received by the authority for
placement in the debt service account are immediately subject to the lien of the pledge
without any further act. Any lien of any pledge is valid and binding against all parties
who have claims of any kind against the authority, regardless of whether the parties have
notice of the lien. The official resolution or any instrument by which this pledge is
created, when adopted by the board, is notice to all concerned of the creation of the
pledge, and those instruments need not be recorded in any other place to perfect the
pledge.

5-868 Bond purchase; cancellation
The board may purchase bonds for cancellation, using any available monies, at a
price not exceeding the following:
1. If the bonds are redeemable at the time of purchase, the applicable redemption
price plus accrued interest to the next interest payment date.
2. If the bonds are not redeemable at the time of purchase, the applicable
redemption price on the first date after purchase on which the bonds become subject to
redemption plus accrued interest to that date.

5-869 Payment of bonds
A. The bonds shall be paid solely from monies in the debt service account.
B. Neither the members of the board nor any person executing the bonds is
personally liable for the payment of the bonds.
C. The treasurer or fiscal agent of the authority shall cancel all bonds when paid.


5-870 Use of surplus monies
A. If a balance remains in the bond proceeds subaccount after all acquisition,
construction and related costs have been paid:
1. The board shall credit the balance to repay any other outstanding indebtedness
of the authority.
2. If the authority has no outstanding indebtedness, the board shall credit the
remaining balance to the authority's operating account established by section 5-836.
B. If a balance remains in the debt service account after payment of all bonds,
interest and other charges related to bonds issued under this article, the board shall
credit the balance to the authority's operating account established by section 5-836.


5-871 Investment of monies in the bond proceedssubaccount
A. The board may authorize the treasurer or fiscal agent of the authority to invest
monies in the bond proceeds subaccount in the manner prescribed by section 5-873.
B. The order directing an investment shall state a date on which the proceeds from
the sale of the bonds will be needed for use, and the treasurer or fiscal agent shall
make the investment in such a way as to mature on or before the specified date.
C. All monies earned as interest or otherwise derived from the investment of the
monies in the bond proceeds subaccount shall be credited to that subaccount.


5-872 Investment of monies in debt serviceaccount
A. The board may authorize the treasurer or fiscal agent of the authority to invest
and reinvest any monies in the debt service account as provided by section 5-873.
B. The order directing an investment shall state a date on which the monies and
other resources in the debt service account will be needed for use, and the treasurer or
fiscal agent shall make the investment in such a way as to mature on or before the
specified date.
C. All monies earned as interest or otherwise derived from the investment of the
monies in the debt service account shall be credited to that account.

5-873 Authorized investments of monies
A. The monies in either the bond proceeds subaccount or the debt service account
may be invested and reinvested at the direction of the board in any of the following:
1. United States treasury obligations.
2. Consolidated farm loan bonds.
3. Obligations issued by the federal intermediate credit banks or by bonds for
cooperatives on authority of the farm credit act of 1933.
4. Any other obligations guaranteed by the United States government.
5. Any investments that are authorized by any other agencies of the United States
government and that are authorized to secure public deposits.
6. State and local government series United States treasury securities.
7. State, county or municipal bonds issued in this state and on which the payments
of interest have not been deferred.
8. Investment agreements and repurchase agreements collateralized by investments
described in paragraphs 1 through 5.
B. The purchase of the securities shall be made by the treasurer or fiscal agent on
authority of a resolution of the board. The treasurer or fiscal agent shall act as
custodian of all securities purchased.
C. The board may place any restrictions on reinvestment yield on bond proceeds or
on any monies pledged to pay the bonds if necessary to comply with federal income tax
laws and regulations to gain any federal tax benefits available with respect to the
bonds.


5-874 Deposit and disbursement ofmonies
A. Monies derived from selling bonds under this article or pledged or assigned to
or in trust for the benefit of the holder or holders of the bonds shall be deposited by
the treasurer or fiscal agent in financial institutions that the board designates and
that are insured by an agency or instrumentality of the United States. The monies shall
be disbursed as the board directs and according to the terms of any agreements with the
holder or holders of the bonds.
B. This section shall not be construed as limiting the power of the board to agree
in connection with the issuance of any of its bonds as to the custody and disposition of
the monies received from selling bonds or from the income and revenues pledged or
assigned to or in trust for the benefit of the holder or holders of the bonds. 5-875 Characteristics of bonds; negotiable;obligation; legal investments; exemption from taxation
A. Bonds issued under this article are fully negotiable within the meaning and for
all purposes of the uniform commercial code, subject only to any provisions for
registration, regardless of whether the bonds actually constitute negotiable instruments
under the uniform commercial code.
B. The bonds, their transfer and the income from the bonds are at all times free
from taxation in this state.
C. Bonds issued under this article:
1. Are obligations of the authority. The members of the board and persons who
execute the bonds are not personally liable for payment of the bonds.
2. Are payable only according to their terms.
3. Are obligations of the authority and are not general, special or other
obligations of this state.
4. Do not constitute a debt of this state.
5. Are not enforceable against this state nor is payment of the bonds enforceable
out of any monies other than the revenue pledged and assigned to, or in trust for the
benefit of, the holder or holders of the bonds.
6. Are securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies, associations and
other persons carrying on an insurance business, all financial institutions, investment
companies and other persons carrying on a banking business, all fiduciaries and all other
persons who are authorized to invest in government obligations may properly and legally
invest.
7. Are securities that may be deposited with public officers or bodies of this
state and municipalities and political subdivisions of this state for purposes that
require the deposit of government bonds or obligations.


5-876 Effect of changing circumstances onbonds; agreement of state
A. Bonds issued under this article remain valid and binding obligations of the
authority notwithstanding that before the delivery of the bonds any of the persons whose
signatures appear on the bonds cease to be officers of the authority.
B. An amendment of any provision in this chapter does not diminish or impair the
validity of bonds issued under this article or the remedies and rights of bondholders.
C. This state pledges to and agrees with the holders of the bonds authorized by
this article that this state will not limit, alter or impair the rights vested in the
authority to receive the monies necessary to fulfill the terms of any agreements made
with the holders of the bonds, or in any way impair the rights and remedies of the
bondholders, until all bonds issued under this article, together with interest on the
bonds, interest on any unpaid installments of principal or interest and all costs and
expenses in connection with any action or proceedings by or on behalf of the bondholders,
are fully met and discharged. The board, as agent for this state, may include this pledge
and undertaking in its resolutions and indentures authorizing and securing its bonds.

5-877 Validity of bonds; legal opinion
A. This article constitutes full authority for authorizing and issuing bonds
without reference to any other law of this state. No other law with regard to authorizing
or issuing obligations or that in any way impedes or restricts performing the acts
authorized by this article may be construed to apply to any proceedings taken or acts
done pursuant to this article.
B. The validity of bonds issued under this article does not depend on and is not
affected by the legality of any proceeding relating to the acquisition, construction,
improvement, operation or maintenance of a multipurpose facility for which the bonds are
issued.
C. The board may submit any bonds to be issued under this article to the attorney
general after all proceedings for authorizing the bonds have been completed. On
submission the attorney general shall examine and pass on the validity of the bonds and
the regularity of the proceedings. If the proceedings comply with this article, and if
the bonds when delivered and paid for will constitute binding and legal obligations of
the authority, the attorney general shall certify on the back of each bond, in substance,
that it is issued according to the constitution and laws of this state and that the
interest on the bonds will be exempt from state taxes as provided by law.
D. The bonds shall recite that they are regularly issued pursuant to this article.
That recital, together with the legal opinion under subsection C, constitutes prima facie
evidence of the legality and validity of the bonds. From and after the sale and delivery
of the bonds, they are incontestable by this state or the authority.